MORTGAGE ADVICE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is mortgage advice in the context of retail banking?
Mortgage advice refers to the professional guidance provided by banks or financial advisors to help customers select, apply for, and manage home loans or loans secured against property, ensuring the product suits their financial needs.
What is the maximum LTV ratio permitted by RBI for home loans above Rs. 75 lakh?
RBI permits maximum 75% LTV for home loans above Rs. 75 lakh.
What is the primary regulatory body overseeing mortgage lending in India?
The Reserve Bank of India (RBI) is the primary regulatory body overseeing mortgage lending in India, issuing guidelines on loan-to-value ratios, provisioning norms, and risk weights for housing loans.
What is the minimum down payment required for a home loan in India?
Minimum down payment is 10-25% depending on loan amount.
What is Loan-to-Value (LTV) ratio in mortgage lending?
The Loan-to-Value ratio is the proportion of the loan amount to the market value or cost of the property, whichever is lower. RBI mandates specific LTV caps (e.g., 75–90%) depending on the loan amount to control credit risk.
What is a mortgage anomaly in the context of property title verification?
Encumbrances, liens, or ownership disputes affecting property title.
What does the National Housing Bank (NHB) regulate?
The National Housing Bank (NHB) regulates and supervises Housing Finance Companies (HFCs) in India, ensuring they follow prudential norms, maintain adequate capital, and protect the interests of depositors and borrowers.
What is the SARFAESI Act and how does it relate to mortgage enforcement?
SARFAESI Act 2002 enables banks to recover dues without court intervention.
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